Financing Real Estate Money Tips

15 June, 2017

VA Loan:

               by  C A MillerEld

   A VA Loan is a fabulous benefit to use on your 

home purchase for veterans.  And it has its true 

advantages.  However I was disturbed by some 

lack of details left out on some sites 

advertising these loans.  So fully understanding 

the process before you begin qualifying for the 

loan would be nice to know.   

   Yes pre-qualify that is fine.  You can pre-

qualify yourselves by taking all gross incomes 

of the buyers and taking 42% of it which will 

be the allowable house payment and its 

impounds paid monthly with the monthly 

house payment.
Your interest rate (on articles I read) was to 

be below market rates by 1/2 to 1.0 less.  Not 

totally true.  The rate can be where your lender 

tells you “You Qualify” which is hogwash.  The 

lender will be happy to get you the absolute 

lowest possible rate if he/she is taken care of 

commission wise.  They get paid more the 

higher they get away with convincing you the 

rate on your deal is XXX and you believe this 

and sign your note and deed of trust paperwork 

therefore closing the process on that believed 

to be the best rate you qualified for.  

   Not knowing the contrary is not common 

knowledge.  Don’t feel bad if you’ve done this 

and bypassed opportunity for much lower 

house payments in so doing.  The gift of 

experience is what I am passing on to you here.

   VA Loans require VA Appraisors to evaluate 

the the homes market value when you hire 

them to look at your prospective home to be 


    The thing is NOT to have an offer written on 

the home prior to this appraisers findings 

because if so and if the value he/she writes the 

market value to be must be below the price you 

were offering to pay or else YOU will get to pay 

the difference of your offer and market value 

below your offer.  The sellers will not 

appreciate revoking the offer they’ve already 

accepted from you.  So market value above an 

offer on the table is fine.  You don’t want the 

value to come back lower.  Money paid over 

and above the VA appraisors value will be like a 

required down payment of cash.  JUST LIKE A 

Down Payment.   So leave it in the AIR and 

don’t rush to offer a particular offering-price 

you will pay, until that appraisor is finished 

writing the evaluation on that property, giving 

their opinion of its market value. 

     The “Price” of a home up for sale even being 

stated prior to the appraisal being done is 

fantasy or dreamland really.    The owners say 

they want $450k and the buyers think it will be 

worth their while to offer $425k and the 

appraisal comes in at a conservative $389k.  

Well if the contract is that their buying it for 

$425, what they offered the sellers, the 

difference between the $389 and the $425 will 

be made up by the buying participants in that it 

will be cash down they come to the closing 

table with because the VA Lender can’t exceed 

VA Appraisal Value in their financing amount.

    Sellers can help with some closing costs, and 

in so doing you will best pay your loan officer 

points above the normal origination fee with 

some of the sellers gratuitous closing cost help 

and buy down to the lowest rate possible. 
Don’t play games here.

  The loan officer works very hard and  puts in a 

ton of hours getting the i’s dotted for you on 

your home loan.  It is not an easy job to meet 

the demands of their loan underwriters and 

meeting deadlines and timelines required is 

very intensive work on the part of your loan 

processing people.  So let them enjoy good 

compensation-they do deserve.  Realtor’s wine 

and cry insults at the meager points charged by 

lenders…exasberated like they were paying it 

themselves on their contractee’s home 


    This is why lenders are reluctant to disclose 

on the front-side any points for themselves to 

be paid from, and instead mess with your mind 

a little on why the interest rate was higher than 


     When really it is so to have back-side points 

rebated back to the lender from which the loan 

processing/loan officer can be paid from.   To 

mitigate agressive snivelling Realtors- whose 

business it is not – anyway.   Yep.  Realtors 

have found their way to recking economies and 

greed based practices form the center of the 

fall of the market here that we suffer now.

More about “that” later,,,

Hoping to be helpful, yours truly, C A MillerEld

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